Funding Circle obtain full FCA authorisation

Funding Circle has announced it has received full authorsiation from the FCA, two weeks after Zopa.

Below is a copy of the email sent to customers:

We are very pleased to to announce that Funding Circle has today received full authorisation from the FCA.

The news comes as we become the largest UK platform (having overtaken Zopa last week in terms of total lending).

There are now over 60,000 retail investors lending directly to small businesses through Funding Circle. Since launching in 2010, they have earned an average return of 6.5% per year and a total of £116 million in net interest.

To manage risk, investors lend small amounts to hundreds of different businesses, all of whom are first assessed by an experienced credit team. Investors also have the option to access money early by selling loan parts to other investors on Funding Circle’s secondary market.

Please get in touch if of interest.

Below is a copy of the press release:

Funding Circle, the world’s leading direct lending platform for small businesses, has today become fully authorised by the Financial Conduct Authority.

Launched in 2010, Funding Circle allows people and organisations to lend to small businesses, offering investors attractive and stable returns whilst supporting the backbone of the British economy.

By bringing together industry leading risk management and cutting edge technology, investors have earned an average 6.5% per year* and £116 million of net interest over the last seven years.

The news puts Funding Circle in a position to be able to launch an Innovative Finance ISA, subject to approval by HMRC.

James Meekings, UK Managing Director and co-founder said: “Our vision is to support thousands of people across the UK to earn stable, industry leading returns by lending directly to small businesses. With more than 60,000 investors now regularly lending through Funding Circle, we are on track to becoming a mainstream investment choice for investors up and down the country.”

Funding Circle facilitates lending to small businesses from a wide range of investors including 60,000 individuals, local authorities, the UK government-owned British Business Bank, the European Investment Bank and financial institutions such as pension funds. Investors have now lent more than £2.3 billion to over 24,000 businesses.